Hockey believes US saved from the brink

Federal Treasurer Joe Hockey says political events in the United States surrounding its budget are a reminder to Australia that it must live within its means.

US Republican leaders are finally in talks with President Barack Obama for a temporary resolution to increase the government's $US16.7 trillion ($A17.7 trillion) debt ceiling before an October 17 deadline.

Stock markets have surged in the hope a deal will be struck, allowing the world's largest economy to avoid a debt default and reverse the partial government shutdown now in place.

Mr Hockey, who is in Washington DC for a Group of 20 (G20) finance ministers' meeting, is optimistic the US has been pulled back from the brink of default.

"That is the good news, but the fact is America cannot continue to sustain its current lifestyle. It needs to address some of the structural problems it has in its budget," Mr Hockey told reporters.

"At the same time there is a message there for Australia - that we cannot continue to live beyond our means."

The latest Department of Finance figures show the federal budget was $10.56 billion in deficit in the first two months of the 2013/14 financial year.

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The statement for July and August showed the deficit was running $1.25 billion larger than predicted in the May budget, due to lower receipts.

A pre-election budget update released by Treasury and Finance in August forecast a $30.1 billion deficit for 2013/14, wider than the $18 billion predicted in the May budget.

Mr Hockey said his meetings with the heads of the International Monetary Fund, the World Bank and the Federal Reserve showed a focus on the medium to long term fortunes of the US economy.

"We can have a growth trajectory for the global economy that sustains the current level of growth and improves on that growth with further new investment in infrastructure and a range of other growth initiatives," he said.

When Australia takes over the chair of the G20 in 2014, Mr Hockey aims to have a simple agenda focusing on real outcomes.

"There is a very strong appetite to focus on how to fund infrastructure and how to facilitate infrastructure, particularly in developing countries," he said.

The treasurer heads to New York next week for meetings with credit rating agencies.

"They are important discussions but they are also going to focus on what we can do to ensure that Australia maintains its credit level at a AAA level," he said.